This blog addresses the fatal flaw at the core of capitalism as a system of human psycho-socio-political-economic collective self-reproduction, a flaw which ultimately renders it a self-DIS-organizing, self-destroying system -- as is becoming increasingly evident. It also details the successor system to capitalism, the new system that represents the higher, positive way forward for humanity: Political-ECONOMIC DEMOCRACY, or EQUITISM.

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Wednesday, November 28, 2018

The Strategy of the Trump Faction -- ‘‘‘Reflate’’’ the Profit-Rate. GLOBAL, HUMAN-SPECIES-STRATEGIC HYPOTHESES.

The Strategy
of the Trump Faction -- ‘‘‘Reflate’’’ the Profit-Rate.

GLOBAL,
HUMAN-SPECIES-STRATEGIC HYPOTHESES.

Dear
Readers,

GLOBAL,
HUMAN-SPECIES-STRATEGIC HYPOTHESES.As we have noted here before, the ‘Rocke-Nazi’ faction -- the formerly, all
but ‘uncontestedly’ ruling faction of the capitalist ruling class, ever since theircoupd’état, in which theyexterminated the leadership of the rival,
‘‘‘Roosevelt faction’’’ in the 1960s, but whoserule is now under severe contestation by the
Trump, ‘crypto-Rooseveltian’ faction revival -- has, together with theirSpokes-Servants,
publicly, if somewhat ‘sequesteredly’, announcing theirplans to exterminate ~95% of the human race, thus
including you and your family.They have been announcing
these plans
for a long time --

-- but are only now approaching, again, the capability to
carry out these horrificplans, iffthey can get the Trump faction out of their way.

What is it about the Trump faction’s strategy that has so
unnerved the ‘Rocke-Nazis’,
to the point that they
have declared all-out ideological total war against the Trump administration,
and against the “nationalist” and “populist” movement that supports that
administration, electorally and otherwise, and have focused all of their mass media assets
-- television, radio, magazines, remnant newspapers -- on a 24 X 7, almost
second-by-second disparagement of everything about Trump and his
administration, of every single thing that he does, down to the minutest
minutiae?Indeed, ever since the ‘Rocke-Nazis’ declared all-out
ideological war on Trump and his faction, there is only one program ever aired
in the ‘Rocke-Nazi’
owned-and/or-controlled mass market tele-media:the ‘Dump-On-Trump Show’!

The working class in America is not a “class for itself”,
aware of its own identity as such, aware of its interests, and actively and
consciously pursuing those interests.It
has largely been reduced
to a defenseless “class in itself”, balkanized and bamboozled by every
divide-and-conquer ruse that the ‘Rocke-Nazis’ have been able to concoct.

One of the consequences of this is that it has taken a long
time for the working class majority to even begin to figure out that the many
misfortunes that have avalanched upon them, upon their whole families, ever
since the 1960s ‘Rocke-Nazi’coupd’état, is the result of a planned -- pre-meditated
-- Rocke-Nazi‘warupontheworking class’,
and especially upon the U.S. working class, as part of the Rocke-Nazis’
general ‘War Against Humanity’.

The movement behind the Trump faction’s electoral victories
is a sign that the U. S. working class is beginning -- just beginning -- to
wake up to that war upon
them, and to their own direperil, at the
hands of the ‘Rocke-Nazi’“Deep State”.

The best times, within capitalist times, for a working class
“in-itself”, are the times of capitalist economic recovery, expansion, boom --
times like right now.

During those times, the pro-productive-forces factions of
the capitalist class, and the working class, can enjoy mutual benefits.During those times, even a partial alliance
is possible between the two classes.

It is such an alliance that the Trump faction is seeking --
and partially succeeding already in achieving.The Trump faction is beginning to deliver prosperity -- even
unprecedented prosperity -- rising wages, falling unemployment, low inflation, >
2% [GDP] growth, etc., and is relying on the working class to deliver electoral
victories to Trump faction candidates in return.

But how has the Trump faction achieved these already
nearly-unprecedentedly-positive economic results, and what is the Trump
faction’s strategy for sustaining and even surpassing these results?And what is the ‘Rocke-Nazi’
strategy to derail all of these unprecedented benefits?

To address the first of these two questions, we will draw
upon Marxian, dialectical social science, and, specifically, upon Marx’s
immanent critique of capitalist political-economics.

Per Marx, and many others, the ‘socio-politico-economic’
driving force of the capitalist world market social formation entire is
profitability, specifically, the general social rate of profit on capital.

We can look at this “rate of profit” in a more phenomenal
view, such as the view of it that capitalists natively take, or we can see this
rate from the more core-analytical, Marxian viewpoint.

The phenomenal view measures this rate as, e.g., “rate of return on Investment, r/I, wherein r denotes the gross monetary return “caused” by
the operation of the capital Invested in fixed capital means of production, etc.,
denoted by I.

The Marxian view measures its “rate of profit” as gross social “surplus value”, s, in relation to the
capital investment that yields that, with that capital investment crucially disaggregated
into the part of the invested capital value that pays workers, v, plus the other part
of invested capital value, that represents capital value that pays for
materials and other non-worker means of production, called c.So the Marxian profit-rate ratio is thus s/(c + v).

These gross
rates, however, do not tell the story of actualized profitability.That story must be stated in terms of
periodic net return,
r’, and of periodic
net surplus-value, s’.

The costs that must be “netted out” of the gross numerators to accurately compute
the net numerators
of these profitability ratios include the following --

L =Land, etc.,rent costs; costs
of periodic payments to the owners of lands

rented or leased to capitalist firms;

T =costs of Taxes paid to
governmental entities by capitalist firms;

G = costs of
compliance with Governmental regulations.

So, with greater specificity as to actualized profitability,
these ratios become --

Marxian core-analytical view:s’/(c + v)=(s - D - L - T -
G)/(c + v);

capitalist, phenomenal view:r’/I=(r - D - L - T -
G)/I.

From the perspective offered by the above profitability
metrics, we can see that the core strategy of the ‘Trump Faction’ is to
‘‘‘reflate’’’ the net
profit rate of, in particular, smaller industrial and manufacturing firms, by
reducing the absolute value dollar size of both T and G for those
firms -- i.e., by reducing both corporate taxes and the costs of compliance
with governmental regulations.

Changes to federal tax law that Congress passed along with
the corporate tax cuts, that tend in the direction of immediate depreciation of
capital investments in new plant and equipment fixed capital, also take some of
the sting out of ‘‘‘technodepreciation’’’, thus encouraging fresh capital
investment by such firms in yet another way.

The resulting, surging increases in profitability will then
fuel, per this strategy, an economic expansion that will look like a sustained
“boom” in comparison to thesustained
strangulation of profitability and productivity that have characterized the ‘Rocke-Nazi’regime in the U.S., ever
since the 1960s.

Tariffs.The ‘Rocke-Nazis’
have used “free trade”, together with non-enforcement of U.S. immigration laws
[de facto “open borders”], to crush the wages and employment
opportunities of the U.S. working class, transferring formerly U.S.-based
higher-paying industrial jobs to foreign dictatorships, which keep their working classes,
and those classes’ wages, in check, by police-state means, resulting in the
de-industrialization of America, and the creation of a vast “Rust Belt” [more
truthfully named ‘The
Rockefeller Belt’] of quasi-Third-World impoverishment and
immiseration in the heartland of the United States.

Rockefeller-whore“economists”,
in droves, opine relentlessly, on Rockefeller-controlled“fake news”media outlets, that
“Tariffs never do anybody any good” and that “Tariffs only raise prices for
consumers”, in a display of statical
thinking that is pathetic even for capitalist-class ideologues.

The Trump tariffs are an integral component of the Trump
Faction’s ‘profit-rate reflation’ strategy.True, in the short run, such tariffs will tend to raise prices.That rise in prices is crucial to the capitalistdynamics that the Trump
Faction seeks to unleash.

Those price increases can create potential profit margins,
big enough to attract capital investment to restart former U.S. industries, the
very industries that the ‘Rocke-Nazis’
had targeted
and destroyed
in theirde-industrialization
campaign/pogrom
since the ‘60s.These potential
profitabilities can thus catalyze a re-industrialization of the United
States.The intensified, innovative investments,
due to the intensified competition of capitals that such re-industrialization
entails, will then lead to heightened productivity, lower unit-costs, and hence
to decreases in the prices initially raised by the tariffs early-on.They will also lead to higher wages and
revitalization for the U.S. working class.

That is the
very last thing that the ‘Rocke-NaziFaction’ ever wants to see!

Risks to the Trump
Faction’s Strategy..
. .

TO BE CONTINUED.

For deeper,
scientificand‘‘‘psychohistorical’’’understanding of this ‘‘‘political-economic
law of motion of modern
-- capitalist --
society’’’,
see the other
key entries to this blog, and see also --